Village OKs ordinance requiring registration, fee for foreclosures

April 27, 2011|Nadia Sorocka nsorocka@tribune.com

During the second reading of an ordinance that requires property owners to register homes and pay a fee on homes that are in foreclosure, the Royal Palm Beach Village Council and staff discussed the use of third-party enforcement and procedures at its April 21 meeting.

"I only see this as a positive thing for neighborhoods." Village Manager Ray Liggins said.

Director of Community Development Robert Hill said that the procedure for occupied and vacant properties would be different. Under the ordinance once a bank started the foreclosure procedure it would need to register with the village.

He said staff would check public default records to identify defaults within the village and would then contact the bank who would need to register the property and pay a fee. Then if the property was found occupied the village would collect contact information and the home would be placed on a watch list.

If the property was found vacant then the property owner would need to provide 24-hour contact information for both responsible parties and contracted maintenance entities, Hill said. Then the property would be inspected once a month, he added.

All properties remaining in default are retained for annual registration requirements, according to village documents.

Councilman David Swift asked village staff how the mortgagee would know that they were required to register with the village. Staff's response was that they would be sent a notice stating they needed to register the property and provide contact information.

He questioned who would do the work of researching default properties and inspecting the properties.

"We are looking to a third party to do a better job identifying the properties," Hill said. "Four hundred units that are vacant or foreclosed properties is what we are anticipating. Needing to be regulated once the ordinance is passed."

Councilman Fred Pinto voiced concerns about from where the funding for a third party would come. Liggins said that an outside party would be funded from a percentage of the registration fee.

"If the fee is about $150, 50 percent will go to pay for the third party," he said.

Pinto wanted to assure residents that people living in a foreclosed home were not paying the fee but that the bank would pay the fee.

The second reading was approved by the council with Mayor Matty Mattioli absent.